The National Assembly (NA) has been looking at recommendations from lawmakers on continuing to provide assistance to the business community. Pham Trong Nghia, NA member from the northern province of Lang Son, said that amid global difficulties affecting Vietnam’s imports and exports, one of the best solutions is to increase domestic demand and develop the domestic market, with a continued reduction of taxes and fees for businesses.

“I agree with many NA members’ proposal that the VAT reduction of 2 per cent need to be extended until June 30, 2024, and I also suggested that the government direct the National Salary Council to negotiate with relevant stakeholders to increase basic salaries for factory workers from July 2024,” Nghia said.

In the middle of this year, the government, for the second time, issued a decree on decreasing VAT by 2 per cent on goods and services subject to a 10 per cent rate, valid from July 1 to December 31.

The new rate will not apply to telecommunications, financial activities, banking activities, securities, insurance, trading of real estate, metals, precast metal products, mining products, coke mining, refined oil, chemical products, and goods and services subject to excise taxes.

Deputy Duong Van Phuoc, NA representative for the south-central province of Quang Nam, underlined that the government should offer “more practical support packages” to enterprises.

“Businesses are suffering from grave shortages of capital, and the government needs to design preferential credit packages in service of production and business activities,” Phuoc said. “Right now, it is necessary to facilitate businesses to approach loans from banks via a reduction of lending rates and loosening borrowing conditions.”

Source: VIR